Can Dismissal Be Considered a Work Injury?

By: Attorney Yaakov Shnitman, Labor Law Specialist

Dismissal is never easy, especially for employees over 40. Many face difficulties returning to the job market, a loss of professional identity, and in some cases, deep emotional crises. This raises a legal question: Can a dismissal, under certain conditions, be classified as a workplace injury, entitling the employee to compensation from the National Insurance Institute?

This question was addressed in a precedent-setting case: Guy Ben Nahum v. Visa Cal Ltd. The plaintiff claimed he had been dismissed in a humiliating manner, leading to emotional shock and the onset of severe depression, sleep disorders, loss of appetite, and memory impairment.

The Regional Labor Court initially rejected the claim, stating that dismissal is a normal part of working life. It also noted the plaintiff only sought medical attention 2.5 years after the event and did not provide concrete evidence of humiliation during the termination process.

However, the National Labor Court took a different view. The panel of judges, led by President Yigal Plitman, ordered the case returned to the lower court for examination by a medical expert to determine whether a causal link existed between the dismissal and the plaintiff’s mental health deterioration.

Eventually, the court ruled that the dismissal did in fact lead to psychological harm and should be recognized as a workplace injury, entitling the plaintiff to benefits accordingly.

Conclusion

This case sets an important precedent: When dismissal causes verified emotional trauma under humiliating circumstances, it may be considered a workplace accident under the law. Employers must understand that emotional harm can carry legal consequences equal to those of physical injury.